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Barack Obama discusses business and the drug war with Mexican president

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US president plays down war on drugs and praises Enrique Peña Nieto for his boldness over economic reforms

US president Barack Obama and his Mexican counterpart Enrique Peña Nieto appeared determined to refocus the rhetoric of the bilateral relations away from drugs and violence and on to the potential of the economic relationship when they met in Mexico City on Thursday.

"When the United States prospers Mexico does well, and when Mexico prospers the United States does well, and that's the message I want to focus on today," Obama said at a press conference held immediately after the hour long meeting in which he rattled off impressive trade figures and downplayed recent differences over US collaboration in the Mexican drug war.

The two presidents announced the formation of a high-level working group to explore ways of pushing the economic relationship forward, and Obama showered praise on Peña Nieto for his "boldness" in pushing economic reforms within Mexico.

Alongside all the talk of greater productivity, competitiveness and taking advantage of growing markets in Asia, the US president also explicitly set out to smooth over recent signs of tension over the new Mexican administration's moves to reduce US influence in Mexican anti-narcotics strategy since the departure of president Felipe Calderón in December.

"We had a wonderful relationship with President Calderón," Obama said, "This is a partnership that will continue."

US involvement in Mexican efforts to bring home-grown cartels under control reached unprecedented levels under Calderón with US drones flying deep into Mexican territory and US agents effectively free to polygraph any Mexican official they liked.

As well as reportedly turfing US agents out of a joint intelligence centre in the northern city of Monterrey, Peña Nieto's government has also made it clear it now wants all co-operation to go through the interior ministry. This is a dramatic change from the individual relationships that US officials enjoyed by with different Mexican security players such as the army, the federal police, the navy or the attorney general's office. That arrangement allowed the US to choose which information it gave to which part of the Mexican apparatus it trusted most.

On Thursday Obama appeared to deny that there were any concerns in the US administration about the new arrangements. "It is obviously up to the Mexican people to determine their security structures and how it engages with other nations including the United States" he said, at the same time as stressing that the US was keen to "co-operate in any way we can to combat organised crime."

The deeper problem appears to be a widening of differences regarding the broader objectives in the drug war that killed around 70,000 people during the Calderón administration and has continued largely unabated since Peña Nieto took office five months ago.

Peña Nieto promised to make reducing the violence his priority, though exactly how he plans to do this remains vague.

At the press conference Peña Nieto saidhe planned to "reduce violence through an effective attack on organised crime," and insisted there was not a contradiction between the two.

Obama's first visit to Mexico since Peña Nieto took office is also due to include a working dinner with his Mexican counterpart as well as a speech to business figures on Friday morning before he flys to Costa Rica for meetings with Central American leaders there.

He was greeted with a major security operation, including the temporary closure of the capital's airport and a metro station and secret service agents all but taking over the area around the hotel where he is due to spend the night.


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